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Wednesday, 24 May 05:28 (GMT -05:00)



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Will Islamic banks become the rivals of Rothschild and the banks of USA and EU?


Bank news. Recently an interesting article under an intriguing title “Rothschilds against Arab rulers” has appeared on a web-site islam.ru. Although a number of analytics have perceived it as a continuation of the threadbare theme about the worlds behind the scenes, which is interesting only to the old-timer conspiracy theorists that are likely to perceive almost in anything “the long arm” of secret societies, organizations, families, or clans. The present article has irrevocably been referred to the whole regiment of similar creations from the range of “Rothschilds rule the world”, if it had not been for one “but”. It remarks a truly interesting idea that in critical conditions the western banking system has faced a strong rival, represented by Islamic banking. In order to conquer it, the western banking system has started revolutions in Arabic world. Beyond any doubt, this quite interesting hypothesis needs comments.

What is the point of Islam banking?

As the community experts of Islamic countries of Masterforex-V Academy note, the so-called Islamic banks are still one of the most mysterious phenomena in the world’s financial system:

1. Islamic bank is one of the institutions, created on the basis of Muslim rights concepts, where the most significant place is occupied by a ban on usury. The usurer himself falls into sin as well as the person who benefits from his services.

2. This means that Islamic banks entirely refuse from collection of interest and futures transactions (they are also under a strong ban on the Koran).

3. The major ban in Islamic banking system is the ban on time games. In other words, it is impossible to pledge future time for the present speculative business.

4. Moreover, Islamic banks adhere to the strongest ban on gambling. They cannot participate in lotteries or any other similar actions.

5. All deposits of the population are interest free.

6. Consequently, a ban on collection of interest from loans (riby) and a refusal from intended risk (garara) is the main difference of Islamic banks from western. Therefore, interest crediting and speculative business at fund and currency markets are not practiced.


Islamic bank is an investor-bank.

 

As a matter of fact, the present Islamic bank deals with project investment, sharing every possible risk with its clients. It cannot insure its investments. Jointly with borrowers, Islamic banks suffer losses on the projects, in which the funds have been invested.

It is for this reason that the bank carefully examines its future client, gets acquainted with its business-plan, allows itself to give advice. The bank is interested in the success of a started business not less than the person who addressed the bank for help.

Consequently, Islamic bank is oriented on real production, but not speculative business.

Credits for personal needs and credits for business development, received in Islamic banks, have considerable differences. Both of them are interest free, but in the second case the bank and the businessman sign an agreement, according to which profit as well as loss shall be shared.

Ordinary investors can also sign an agreement with the bank, entitling it to use their funds as investments (mudaraba) or refusing to give such privilege to the bank. In case of agreement, the investor shall receive his share in profit (from a successful transaction) or, vice versa, shall suffer certain losses. However, the particular feature of such transaction is represented by a total acknowledgement of the investor about the sphere, in which his money is involved. He is certain that these funds have not been involved in activities that are banned by Shariat (the production of alcohol, drugs, prostitution, gambling, pork processing and its trade, etc.).

Despite all the “ingenuity” in their operation, Islamic banks do not become bankrupts and even obtain considerable profit.


How do Islamic banks earn?

This definitely is a very important question. By refusing from the western system, which is based on usury, Islamic banking initially puts itself in a losing condition in comparison to the former. There arises a question: “By which means can there exist a bank that does not collect interest?”

1. Real property resale by installments. Instead of giving a loan to the client for the purchase of housing, the bank buys it and later sells it to the client by installments, but at a higher price. It is not considered to be a collection of interest, but a certain payment for the risk.

2. Participation in the funding of projects for a certain share in profit. Consequently, Islamic banks, unlike western, are aimed not at receiving maximum profit, but at creation of additional value.

3. Islamic banks also practice such transaction as murabaha. In other words, they deal with purchase and sale. According to an agreement with a client, the bank purchases certain goods for sale. In this case the bank can deal with marketing, transportation, storage, the sale itself.

4. Granting of a special credit "sukuk". The bank receives its percentage not from a granted amount but from the profit of an indebted company.

5. Islamic banks also actively deal with security papers, but are represented more like bidders.

6. Many faithful Muslims pay zakiattax on wealth. This is demanded not by the state, but by Shariat. Zakiat is a solely voluntary action intended to help the poor. In such a case, the faithful most frequently bring these funds into Islamic banks.


Is Islamic banking conquering the world?

 

The first Islamic banks appeared in Middle East slightly earlier than 30 years ago:

At present they are represented in 75 countries of the world (not only Islamic).

Their mutual resources amount to more than 300 billion dollars.

According to some assessments, the quantity of Islamic investments in the worlds economies has reached the amount of 400 billion dollars.

The volume of transactions in the international Islamic banks system undergoes a yearly growth of 15%.

Islamic banks confidently enter the worlds financial market, where the establish partnership with the worlds largest banks.

• Deutsche bank, Citibank, HSBC open special Islamic departments. Citibank has opened a specialized section. So-called “Islamic windows” operate in many European and American banks. However, in the last case there exists a considerable risk for a faithful Muslim that his money can be mixed with non-halal (impure) money, which is received from criminal.

Islamic banks have almost not suffered from the worlds financial crises, having demonstrated the highest effectiveness. Therefore, the present Islamic banking system is making considerable steps towards integration into the world’s financial system. At the same time, the largest western banks do not show hostility towards it (openly at least) and meet its needs in every possible way. The West is bond to take into consideration the billion of Muslims and their values.


Talks about the efforts of the West to “crash” Islamic banking by means of “Arabic revolutions” are no more than exaggerations. The only example with the first Tunisian Islamic bankZituna”, which after the revolution has been engulfed by Tunisian Central Bank that is under the control of the Rothschilds, is not very persuasive. At the same time, Americans were doing their best to save the overloaded with Islamic banks Bahrain from revolution. UAE and Saudi Arabia, where only Islamic banks exist, are predominated by peace and stability. However, in “revolutionary” Egypt and Tunisia only several financial establishments of this kind exist. At present, the same can be related to uneasy Yemen and Siria.

 

For a more objective assessment of the situation, the staff of the magazine "Market Leader" suggests a questionnaire in trader’s forum: in your opinion, for the western world Islamic banking system is:

an excellent solution of a difficult situation;

a real threat;

just an interesting exotica.

 

You are free to discuss this article here:   forum for traders and investors

 

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Macron Will Shift the Balance of Powers in the Normandy Format in Favor of Ukraine

For those of you who don’t know, the so-called Normandy format was created to resolve the difficult situation in the East of Ukraine. France is one of the participants. As you know, Emmanuel Macron has recently won the presidential election in France. This means that he is going to become the successor to Francois Hollande as President of France, participating in the Normandy format as the French representative.

 

 
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Stratfor Gave Prediction for the next 3 Months

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Publication date: 26 April 01:16 PM

Sixteen Structural Reforms Is the Cost of the Next IMF Tranche to Ukraine

Anders Aslund, a Swedish economist and a Senior Fellow at the Atlantic Council, commented on the current and future cooperation between the IMF and Ukraine. He claims that Kiev will have to implement at least 16 structural reforms in order to get another tranche from the International Monetary Fund. He also explained why the IMF is still cooperating with Ukraine.

Publication date: 26 April 11:01 AM

Putin Underestimated Ukrainians When Invading Ukraine, Atlantic Council

American private institution Atlantic Council assumes that Vladimir Putin underestimated the Ukrainians when invading Ukraine.
 

 

They say that the hybrid war started by Russia in Ukraine has been going on for the 4th year. There were times when nobody believed that Ukraine would hold on even for 4 weeks. The thing is, the Crimea was annexed without any fight, which made international experts believe that Ukraine was weak and completely dependent on Russia. This stand point used to be popular in Moscow as well. Some Russian politicians expected a complete victory in a couple of months, but back than Ukraine was vulnerable after the revolution, which lead to the end of Yanukovich’s regime, while the temporary government was lacking legitimacy to seriously resist Russia. Back then, Russia got a chance to occupy the rest of Ukraine. Vladimir Putin seemed to be encouraged by the success in the Crimea.
Publication date: 26 April 08:37 AM

Experts on Statements Made by Russian Officials about Russian Economic Recovery

International experts have commented on the recent statements made by several Russian officials about some economic recovery in Russia. They say that the weak economic growth isn’t backed by higher standards of living in the Russian Federation.

Publication date: 23 April 02:05 AM

USA Today Names the Reasons Why the USA Is Concerned about the Situation in Ukraine

USA Today has named the reasons why the United states should be concerned about the armed conflict in the East of Ukraine.

 

Previously, US Secretary of State Rex Tillerson asked his European colleagues why American taxpayers should be concerned about the situation in Ukraine. The answer came from his French colleague, who said that the United States should be interested in a strong Europe. On top of that, there are some other reasons why the USA shouldn’t stop thinking about Ukraine.

Publication date: 21 April 12:00 PM

Trump's Plan on Syria: Russia to Stay in Syria, Asad Has to Leave

At this point, several media sources, including Associated Press, report they know the details of the offer brought by Rex Tillerson to Moscow during his official visit. Now, everyone seems to be wondering what exactly Rex Tillerson and Sergey Lavrov discussed during their meeting in Moscow.
 

 

First of all, the sources claim that the USA is ready to unite forces with Russia to destroy the ISIS once and for all. Secondly, Bashar Asad has to quit anyway. He will be even allowed to go to Russia or Iran to avoid prosecution. Thirdly, a temporary government need to be established in Syria to back stabilization and holding a democratic election in Syria. Russia can stay in Syria to back security but they shouldn’t interfere with the local politics.
Publication date: 18 April 11:34 PM

Today's Russia-US Relations Are Worse Than During Obama’s Administration

At this point, the bilateral relations between Moscow and Washington are even worse than they used to be during Obama’s administration. This is what President Putin thinks on the matter.

 

 
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Publication date: 18 April 11:05 PM

Will North Korea Become Another Syria for the USA?

The latest events in Syria made many international observers change their mind regarding President Trump. The current conditions also show that getting rid of North-Korean leader Kim Jong Un may also become a major goal for President Trump.

 

 
The news that U.S. aircraft carrier Carl Vinson suddenly reversed and moved to the Western part of the Pacific Ocean in the direction of the Korean Peninsula attracted the interest of the international community. Given the 59 missiles launched to hit a Syrian airbase a couple of weeks ago, this maneuver of the aircraft carrier does raise a lot of concerns.
Publication date: 18 April 03:29 AM